Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

## HFL Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

`Free Cash Flow = Operating Cash Flow - Capital Expenditures`

Using above formula to calculate Free Cash Flow for Henderson Far East Income Limited (HFL), the free cash flow value is -5.00M.

All amounts in GBP

Operating Cash
-5M
Capital Expenditure
-
Free Cash Flow
-5.00M

Henderson Far East Income Limited has a negative free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

## HFL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Henderson Far East Income Limited (NZX:HFL).

31 Aug 202131 Aug 202031 Aug 201931 Aug 2018
Net Income29.68M-48.82M28.31M6.59M
Change To Netincome-39.63M54.85M-13.22M-547k
Change To Liabilities943k41k1.23M-145k
Change To Operating Activities4.01M-4.29M-1.5M167k
Total Cash From Operating Activities-5M1.78M14.81M6.07M
Dividends Paid-34.04M-31.65M-28.09M-25.99M
Net Borrowings17.27M-8.89M-15.94M-536k
Other Cashflows From Financing Activities-108k-182k-84k-69k
Total Cash From Financing Activities14.3M-3.26M-16.13M-8.61M
Effect Of Exchange Rate504k-1M555k-585k
Change In Cash9.81M-2.48M-757k-3.12M
Issuance Of Stock31.19M37.46M27.98M17.98M